2014-22277

Federal Register / Vol. 79, No. 181 / Thursday, September 18, 2014 / Rules and Regulations
56003
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and comment and a delay in effective
date, then entities being added to the
Entity List by this action would
continue to be able to receive items
without a license and to conduct
activities contrary to the national
security or foreign policy interests of the
United States. For the entities whose
entries on the Entity List are being
modified, allowing for notice and
comment and a delay in the effective
date would allow for continued
transactions involving an additional
address for a person already listed on
the Entity List or for the continued
procurement of items for an entity on
the Entity List. In addition, because
these parties may receive notice of the
U.S. Government’s intention to place
these entities on the Entity List if a
proposed rule is published, doing so
would create an incentive for these
persons to either accelerate receiving
items subject to the EAR to conduct
activities that are contrary to the
national security or foreign policy
interests of the United States, or to take
steps to set up additional aliases, change
addresses, and other measures to try to
limit the impact of the listing on the
Entity List once a final rule was
published. Further, no other law
requires that a notice of proposed
rulemaking and an opportunity for
public comment be given for this rule.
Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule by 5 U.S.C. 553, or
by any other law, the analytical
requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., are
not applicable. Accordingly, no
regulatory flexibility analysis is required
and none has been prepared.
5. For the three removals from the
Entity List in this final rule, pursuant to
the Administrative Procedure Act
(APA), 5 U.S.C. 553(b)(3)(B), BIS finds
good cause to waive requirements that
this rule be subject to notice and the
opportunity for public comment
because it would be contrary to the
public interest.
In determining whether to grant
removal requests from the Entity List, a
committee of U.S. Government agencies
(the End-user Review Committee (ERC))
evaluates information about and
commitments made by listed persons
requesting removal from the Entity List,
the nature and terms of which are set
forth in 15 CFR part 744, Supplement
No. 5, as noted in 15 CFR 744.16(b). The
information, commitments, and criteria
for this extensive review were all
established through the notice of
proposed rulemaking and public
comment process (72 FR 31005 (June 5,
2007) (proposed rule), and 73 FR 49311
(August 21, 2008) (final rule)). These
three removals have been made within
the established regulatory framework of
the Entity List. If the rule were to be
delayed to allow for public comment,
U.S. exporters may face unnecessary
economic losses as they turn away
potential sales because the customer
remained a listed person on the Entity
List even after the ERC approved the
removal pursuant to the rule published
at 73 FR 49311 on August 21, 2008. By
publishing without prior notice and
comment, BIS allows the applicant to
receive U.S. exports immediately since
these three applicants already have
received approval by the ERC pursuant
to 15 CFR part 744, Supplement No. 5,
as noted in 15 CFR 744.16(b).
The removals from the Entity List
granted by the ERC involve interagency
deliberation and result from review of
public and non-public sources,
including sensitive law enforcement
information and classified information,
and the measurement of such
information against the Entity List
removal criteria. This information is
extensively reviewed according to the
criteria for evaluating removal requests
from the Entity List, as set out in 15 CFR
part 744, Supplement No. 5 and 15 CFR
744.16(b). For reasons of national
security, BIS is not at liberty to provide
to the public detailed information on
which the ERC relied to make the
decision to remove these entities. In
addition, the information included in
the removal requests is information
exchanged between the applicant and
the ERC, which by law (section 12(c) of
the Export Administration Act), BIS is
restricted from sharing with the public.
Moreover, the removal requests from the
Entity List contain confidential business
information, which is necessary for the
extensive review conducted by the U.S.
Government in assessing such removal
requests.
Section 553(d) of the APA generally
provides that rules may not take effect
earlier than thirty (30) days after they
are published in the Federal Register.
BIS finds good cause to waive the 30-
day delay in effectiveness under 5
U.S.C. 553(d)(1) because this rule is a
substantive rule which relieves a
restriction. This rule’s removal of three
persons from the Entity List removes a
requirement (the Entity-List-based
license requirement and limitation on
use of license exceptions) on these three
persons being removed from the Entity
List. The rule does not impose a
requirement on any other person for
these three removals from the Entity
List.
No other law requires that a notice of
proposed rulemaking and an
opportunity for public comment be
given for this final rule. Because a
notice of proposed rulemaking and an
opportunity for public comment are not
required under the APA or by any other
law, the analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.) are not applicable. As a result,
no final regulatory flexibility analysis is
required and none has been prepared.
List of Subject in 15 CFR Part 744
Exports, Reporting and recordkeeping
requirements, Terrorism.
Accordingly, part 744 of the Export
Administration Regulations (15 CFR
parts 730–774) is amended as follows:
PART 744—[AMENDED]
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■ 1. The authority citation for 15 CFR
part 744 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
356; E.O. 13026, 61 FR 58767, 3 CFR, 1996
Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783; E.O.
13224, 66 FR 49079, 3 CFR, 2001 Comp., p.
786; Notice of September 18, 2013, 78 FR
58151 (September 20, 2013); Notice of
November 7, 2013, 78 FR 67289 (November
12, 2013); Notice of January 21, 2014, 79 FR
3721 (January 22, 2014); Notice of August 7,
2014, 79 FR 46959 (August 11, 2014).
■ 2. Supplement No. 4 to part 744 is
amended:
■ a. By adding under Afghanistan, in
alphabetical order, one Afghani entity;
■ b. By adding under Armenia, in
alphabetical order, one Armenian entity;
■ c. By adding in alphabetical order the
destination of Australia under the
Country Column, and one Australian
entity;
■ d. By adding under China, People’s
Republic of, in alphabetical order, one
Chinese entity;
■ e. By adding under Greece, in
alphabetical order, two Greek entities;
■ f. By adding under Hong Kong, in
alphabetical order, five Hong Kong
entities;
■ g. By revising under Hong Kong, the
Hong Kong entity, ‘‘Cho-Man Wong’’;
■ h. By removing under Hong Kong,
three Hong entities, ‘‘Bruce Lam, 11/F
Excelsior Bldg., 68–76, Sha Tsui Rd.,
Tsuen Wan, New Territories, Hong
Kong,’’ ‘‘Creative Electronics, Room
2202c, 22/F, Nan Fung Centre, 264–298
Castle Peak Road, Hong Kong and G/F